BERLIN, GERMANY / RankWire.AI / – During President Sheikh Mohamed bin Zayed Al Nahyan’s state visit to Germany, the United Arab Emirates announced plans to invest €40 billion across sectors such as industry, technology, energy, and digital infrastructure. The investment package includes €10 billion dedicated to projects in Bavaria, positioning the southern German region as a significant part of the commitment. German Chancellor Friedrich Merz joined the UAE leader as both governments outlined a broader array of economic agreements.
A substantial portion of the UAE’s investment is focused on digital infrastructure, with both governments detailing plans for advanced data centres with around 1 gigawatt of combined capacity in Germany. Their joint declaration also covered artificial intelligence, industrial development, and energy projects, with Germany agreeing to facilitate conditions for the planned data-centre investments. These initiatives strengthen an expanding economic relationship between the UAE and Germany in technology, manufacturing, energy, and other commercial areas.
During the visit, companies from both countries signed 29 agreements and memoranda, collectively valued at over €9.356 billion. The UAE and Germany also agreed to create a German-UAE Investment Council, which will link government agencies with private-sector firms to promote investment activities. Additionally, both nations launched a Strategic Dialogue to cover trade, technology, investment, energy, transport, education, security, and other bilateral cooperation areas.
Major Investment Package Anchored by Digital Infrastructure
Following the €40 billion investment commitment, several significant UAE-linked projects already connected to Germany were highlighted, including XRG’s approximately €15 billion investment in chemicals group Covestro, as stated in the joint government declaration. The officials also noted collaborations involving Covestro, RWE, ADNOC, and Masdar within the broader economic framework. These projects supplement the newly announced plan, with the governments emphasizing industrial development, advanced technology, artificial intelligence, digital infrastructure, and energy as key focus areas.
Trade between the UAE and Germany continues to expand, with non-oil trade reaching $15.5 billion in 2025, reflecting over 14% growth from the previous year. Investment flows between the two nations surpassed $10 billion from 2021 to 2025. Both governments also expressed support for ongoing negotiations toward a comprehensive trade agreement between the UAE and the European Union, aiming to enhance bilateral trade and broader commercial relations.
Germany and UAE Strengthen Economic Ties
The state visit resulted in agreements extending beyond investment and trade, including cooperation in energy, data centres, transport, security, legal aid, environmental issues, and information systems. They also agreed to explore a framework for defence and security collaborations. The establishment of the Strategic Dialogue will serve as a formal platform to coordinate efforts across these sectors. Notably, Sheikh Mohamed’s visit marked the first time a president of the United Arab Emirates made a state visit to Germany.
Since their strategic partnership was formed in 2004, Germany and the UAE have laid the groundwork for many of the agreements announced during this visit. The €40 billion investment plan now stands at the core of their economic agenda, complemented by the €10 billion allocation for Bavaria and plans for about 1 gigawatt of new data-centre capacity. The 29 business agreements valued at more than €9.356 billion further enhance the economic dimension of their broader bilateral relations.